Key Takeaways:

33 states and nine attorney generals sued Facebook and Instagram’s parent company, Meta.

The lawsuit alleged that social media platforms harmed youth’s mental health.

Meta stock dropped over 12% WTD.

NEW DELHI (CoinChapter.com) — Social media giant Meta finds itself in troubled waters after 42 US states filed a lawsuit for harming teens’ mental health. The list of states suing Meta includes California, Colorado, New York, Arizona, Illinois, etc.

The Meta lawsuit accused the firm of harming the mental health of its young users. The plaintiffs alleged that the firm designed its platforms to be addictive. Furthermore, the states suing Meta claimed that the firm deliberately violated state and federal laws while trying to increase its user base.

Meta has harnessed powerful and unprecedented technologies to entice, engage, and ultimately ensnare youth and teens. Its motive is profit, and in seeking to maximize its financial gains, Meta has repeatedly misled the public about the substantial dangers of its Social Media Platforms

Excerpt from Meta lawsuit

In addition to the list of the 33 states suing Meta together, nine attorneys general filed individual lawsuits against the firm in their respective states and the District of Columbia.

Meta Praying On Children For Profit

Moreover, the lawsuit alleged that Meta’s business model violated the Children’s Online Privacy Protection Act of 1998 (COPPA). The law protects children’s privacy by “requiring technology companies like Meta to obtain informed consent from parents” before accessing children’s online information.

The Meta lawsuit stated that the social media giant did not even attempt to obtain parental consent before collecting children’s data. Furthermore, the plaintiffs alleged that Meta’s Instagram was responsible for increased levels of anxiety and depression among teens.

The Meta lawsuit over youth mental health pointed out that Instagram’s design features, such as likes and followers, “exploit teens’ vulnerability to social comparison.”

Several social media posts have often alleged that the so-called ‘Instagram models‘ often encourage unhealthy and nigh unachievable beauty standards, leading to feelings of shame and low self-esteem among teens and tweens.

Additionally, the lawsuit noted that an increase in female suicide ideation accompanied Instagram and Facebook’s rise in popularity.

In just the one decade of Instagram’s rising popularity, there was a 30% increase in the rate of high school girls who attempted suicide.

The lawsuit alleged.

The 33 states claimed that Meta is aware of the harmful impact of its social media platforms on youth mental health but has refused to change its way. Moreover, the lawsuit alleged that the firm has actively misrepresented and downplayed the impact of its platform on youth.

META Share Price Drops

Meanwhile, META stock price dropped over 12.2% week-to-day to reach a daily low near $279 on Oct. 26. However, bulls are aggressively defending the region near the 100-day EMA (the blue wave), given the long lower wick on the day’s candle.

A close below the trendline might force META price to test the 200-day EMA (the green wave) near $263.

Breaching the immediate resistance might force the bulls to defend the resistance near $223. A confirmed break below the immediate resistance might result in traders shorting META stocks.

On the other hand, META share price needs to break above the 50-day EMA (the purple wave) and 20-day EMA (the red wave) trendlines to challenge the resistance near $321.

Breaking and consolidating above the immediate resistance could infuse confidence in the rally, helping META price target the resistance near $358 before retreating.

The RSI for META remained neutral, with a score of 35.5 on the daily charts.

The post 42 US States Sue Meta Over Youth Mental Health Issues, Firm’s Stock Drops 12% WTD appeared first on CoinChapter.

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Filed under: Bitcoin - @ October 26, 2023 5:08 pm